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Schwab
Funds®
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Summary
Prospectus March 18,
2011
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Schwab Investor
Money
Fund®
Ticker
symbol: SWRXX
Before you invest, you may want to review the funds
prospectus, which contains more information about the fund and
its risks. You can find the funds prospectus, Statement of
Additional Information (SAI) and other information about the
fund online at www.schwabfunds.com/prospectus. You can
also obtain this information at no cost by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com. If you purchase or hold
fund shares through a financial intermediary, the funds
prospectus, SAI, and other information about the fund are
available from your financial intermediary.
The funds prospectus, dated April 30, 2010, and SAI,
dated April 30, 2010 as amended July 8, 2010, as
supplemented January 24, 2011 and March 18, 2011,
include a more detailed discussion of fund investment policies
and the risks associated with various fund investments. The
prospectus and SAI are incorporated by reference into the
summary prospectus, making them legally a part of the summary
prospectus.
Investment
objective
The funds goal is to seek the highest current income
consistent with stability of capital and liquidity.
Fund fees
and expenses
This table describes the fees and expenses you may pay if you
buy and hold shares of the fund.
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Shareholder
fees
(fees
paid directly from your investment)
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None
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Annual
fund operating expenses
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(expenses
that you pay each year as a % of the value of your investment)
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Management fees
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0.33
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Distribution (12b-1) fees
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None
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Other expenses*
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0.28
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Total annual fund operating expenses
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0.61
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*
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Restated to reflect
current fees and expenses.
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Example
This example is intended to help you compare the cost of
investing in the fund with the cost of investing in other mutual
funds. The example assumes that you invest $10,000 in the fund
for the time periods indicated and then redeem all of your
shares at the end of those time periods. The example also
assumes that your investment has a 5% return each year and that
the funds operating expenses remain the same. The expenses
would be the same whether you stayed in the fund or sold your
shares at the end of each period. Your actual costs may be
higher or lower.
Expenses on
a $10,000 investment
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1 year
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3 years
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5 years
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10 years
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$62
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$195
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$340
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$762
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Principal
investment strategies
To pursue its goal, the fund invests in high-quality
short-term money market investments issued by U.S. and
foreign issuers, such as:
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commercial paper, including asset-backed commercial paper
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promissory notes
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certificates of deposit and time deposits
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variable- and floating-rate debt securities
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bank notes
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repurchase agreements
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obligations that are issued by the U.S. government, its
agencies or instrumentalities, including obligations that are
not guaranteed by the U.S. Treasury, such as those issued
by Fannie Mae and Freddie Mac (U.S. government securities)
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All of these investments will be denominated in
U.S. dollars, including those that are issued by foreign
issuers. Obligations that are issued by private issuers that are
guaranteed as to principal or interest by the
U.S. government, its agencies or instrumentalities are
considered U.S. government securities under the rules that
govern money market funds.
In choosing securities, the funds manager seeks to
maximize current income within the limits of the funds
credit, maturity and diversification policies. Some of these
policies may be stricter than the federal regulations that apply
to all money funds.
The investment advisers credit research department
analyzes and monitors the securities that the fund owns or is
considering buying. The manager may adjust the funds
holdings or its average maturity based on actual or anticipated
changes in interest rates or credit quality. To preserve its
investors capital, the fund seeks to maintain a stable
$1.00 share price.
Principal
risks
The fund is subject to risks, any of which could cause an
investor to lose money. The funds principal risks include:
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Investment Risk. Your investment in the fund is not
a bank deposit and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
Although the fund seeks to preserve the value of your investment
at $1.00 per share, it is possible to lose money by investing in
the fund.
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Interest Rate Risk. Interest rates rise and fall
over time. As with any investment whose yield reflects current
interest rates, the funds yield will change over time.
During periods when interest rates are low, the funds
yield (and total return) also will be low. In addition, to the
extent the fund
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makes any reimbursement payments to the investment adviser
and/or its
affiliates, the funds yield would be lower.
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Credit Risk. The fund is subject to the risk that a
decline in the credit quality of a portfolio investment could
cause the fund to lose money or underperform. The fund could
lose money if the issuer or guarantor of a portfolio investment
fails to make timely principal or interest payments or otherwise
honor its obligations. The negative perceptions of an
issuers ability to make such payments could also cause the
price of that investment to decline. The credit quality of the
funds portfolio holdings can change rapidly in certain
market environments and any default on the part of a single
portfolio investment could cause the funds share price or
yield to fall. The additional risks of foreign investments are
due to reasons ranging from a lack of issuer information to the
risk of political uncertainties.
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Many of the U.S. government securities that the fund
invests in are not backed by the full faith and credit of the
United States government, which means they are neither issued
nor guaranteed by the U.S. Treasury. Issuers of securities
such as Fannie Mae, Freddie Mac and the Federal Home Loan Banks
(FHLB) maintain limited lines of credit with the
U.S. Treasury. Other securities, such as obligations issued
by the Federal Farm Credit Banks Funding Corporation (FFCB), are
supported solely by the credit of the issuer. There can be no
assurance that the U.S. government will provide financial
support to securities of its agencies and instrumentalities if
it is not obligated to do so under law. Also, any government
guarantees on securities the fund owns do not extend to shares
of the fund itself.
On September 7, 2008, the U.S. Treasury announced a
federal takeover of Fannie Mae and Freddie Mac, placing the two
federal instrumentalities in conservatorship. The actions of the
U.S. Treasury intended to ensure that Fannie Mae and
Freddie Mac maintain a positive net worth and meet their
financial obligations, preventing mandatory triggering of
receivership. No assurance can be given that the
U.S. Treasury initiatives will be successful.
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Management Risk. Any actively managed mutual fund is
subject to the risk that its investment adviser will make poor
security selections. The funds investment adviser applies
its own investment techniques and risk analyses in making
investment decisions for the fund, but there can be no guarantee
that they will produce the desired results. The investment
advisers maturity decisions will also affect the
funds yield, and in unusual circumstances potentially
could affect its share price. To the extent that the investment
adviser anticipates interest rate trends imprecisely, the
funds yield at times could lag those of other money market
funds.
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Liquidity Risk. Liquidity risk exists when
particular investments are difficult to purchase or sell. The
market for certain investments may become illiquid due to
specific adverse changes in the conditions of a particular
issuer or under adverse market or economic conditions
independent of the issuer. The funds investments in
illiquid securities may reduce the returns of the fund because
it may be unable to sell the illiquid securities at an
advantageous time or price. Further, transactions in illiquid
securities may entail transaction costs that are higher than
those for transactions in liquid securities.
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Redemption Risk. The fund may experience
periods of heavy redemptions that could cause the fund to
liquidate its assets at inopportune times or at a loss or
depressed value, particularly during periods of declining or
illiquid markets. Redemptions by a few large investors in the
fund may have a significant adverse effect on the funds
ability to maintain a stable $1.00 share price. In the
event any money market fund fails to maintain a stable net asset
value, other money market funds, including the fund, could face
a market-wide risk of increased redemption pressures,
potentially jeopardizing the stability of their $1.00 share
prices.
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Money Market Risk. The fund is not designed to offer
capital appreciation. In exchange for their emphasis on
stability and liquidity, money market investments may offer
lower long-term performance than stock or bond investments.
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Performance
The bar chart below shows how the funds investment results
have varied from year to year, and the following table shows the
funds average annual total returns for various periods.
This information provides some indication of the risks of
investing in the fund. All figures assume distributions were
reinvested. Keep in mind that future performance may differ from
past performance. For current performance information, please
see www.schwabfunds.com/prospectus or call toll-free
1-800-435-4000
for a current
seven-day
yield.
Annual
total returns
(%) as of
12/31
Best
quarter: 1.52% Q3 2000 Worst
quarter: 0.00% Q4 2009
Average
annual total returns
(%) as of
12/31/09
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1 year
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5 years
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10 years
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Fund
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0.16
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2.89
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2.67
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Investment
adviser
Charles Schwab Investment Management, Inc.
Purchase
and sale of fund shares
The fund is open for business each day that the New York Stock
Exchange is open except when the following federal holidays are
observed: Columbus Day and Veterans Day.
When you place orders to purchase, exchange or redeem fund
shares through Charles Schwab & Co., Inc. (Schwab) or
another financial intermediary, you must follow Schwabs or
the other financial intermediarys transaction procedures.
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Summary Prospectus March 18, 2011
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2 of 4
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Schwab Investor Money
Fund®
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Eligible Investors (as determined by the fund and which
generally are limited to institutional investors) may invest
directly in the fund by placing purchase, exchange and
redemption orders through the funds transfer agent.
Eligible Investors must contact the transfer agent by phone or
in writing to obtain an account application. Eligible Investors
may contact the transfer agent:
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by telephone at
1-800-407-0256; or
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by mail in writing at Boston Financial Data Services, Attn:
Schwab Funds, P.O. Box 8283, Boston, MA
02266-8323.
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Set forth below are the investment minimums for the fund. These
minimums may be waived for certain investors.
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Minimum
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Minimum
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initial
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additional
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Minimum
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investment
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investments
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balance
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Schwab Investor Money
Fund®
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Participants in Employer-Sponsored Retirement Plans (Trading
symbol: SWRXX)
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$
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1
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$
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1
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$
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1
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Other Investors (Trading symbol: SW2XX)
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$
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2,500
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$
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500
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$
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2,500
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Tax
information
Distributions received from the fund will generally be taxable
as ordinary income or capital gains, unless you are investing
through an IRA, 401(k) or other tax-advantaged account.
Payments
to financial intermediaries
If you purchase shares of the fund through a broker-dealer or
other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund
shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other
financial intermediary and your salesperson to recommend the
fund over another investment. Ask your salesperson or visit your
financial intermediarys website for more information.
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Summary Prospectus March 18, 2011
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3 of 4
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Schwab Investor Money
Fund®
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